Rainforest secures US$21.5M funding, reports 9x growth in FY2022 revenue
Singapore-based e-commerce aggregator Rainforest has raised US$21.5 million in a convertible note round from existing investors, including Canopy Tropics, Monks Hill Ventures, Insignia Venture Partners, and January Capital.
This brings the company’s total funding (debt and equity) to over US$100 million.
Also Read: Navigating the e-commerce jungle: Rainforest’s tech-driven journey in brand aggregation
Rainforest plans to use the funds to acquire new e-commerce brands, improve the platform capabilities to accelerate channel expansion, and for geographical expansion and product development.
Along with this, the startup also reported a revenue of US$37.5 million for the financial year 2022. This represents a 9x growth over US$4.2 million in the same period last year.
This was achieved by acquiring six brands in 2022 and also though organic growth of its previously acquired brands. Net loss for FY2022 was US$10 million compared to US$2.1 million in the prior year, as the company continued to invest in its team and technology platform to operate and grow its portfolio of brands.
Also Read: Rainforest acquires baby care brand NatureBond to grow its portfolio of cross-border brands
Rainforest was launched in January 2021. The company acquires consumer e-commerce brands, providing entrepreneurs with a healthy exit. It also invests in the acquired brands to grow them globally. Rainforest leverages its proprietary technology to improve inventory management, cost optimisations, and expansions to new marketplaces and channels for these brands – mainly in home goods, mother & kids, personal care, and pet categories.
The firm now operates a portfolio of 16 brands, mainly in the parents and kids categories. Some notable brands include Babbleroo (diaper backpack, Lilly’s Love (toy storage), Comfy Bumpy (baby furniture), and Baby Deedee (baby sleepwear). It expects to make further acquisitions before the year’s close, including brands with more omnichannel distribution channels.
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